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Faculty of Engineering and Information Faculty of Engineering and Information

Sciences - Papers: Part A Sciences

1-1-2016

Maintaining pipeline integrity through holistic asset management

Khaled O. El-Akruti
University of Wollongong, khaled@uow.edu.au

Tieling Zhang
University of Wollongong, tieling@uow.edu.au

Richard Dwight
University of Wollongong, radwight@uow.edu.au

Follow this and additional works at: https://ro.uow.edu.au/eispapers

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Recommended Citation
El-Akruti, Khaled O.; Zhang, Tieling; and Dwight, Richard, "Maintaining pipeline integrity through holistic
asset management" (2016). Faculty of Engineering and Information Sciences - Papers: Part A. 6058.
https://ro.uow.edu.au/eispapers/6058

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Maintaining pipeline integrity through holistic asset management

Abstract
A review of the concept of engineering asset management (EAM) and its role in integrity management
within the context of energy pipelines has been conducted. The EAM system is shown to be concerned
with pipeline integrity assurance at any point of the asset life. The effectiveness of a holistic EAM
approach to assuring pipeline integrity is explored through case studies for pipelines that transport high
pressure natural gas or liquid petroleum. The research examines the EAM system activities, data available
and information flow and decision mechanisms utilised in industry and their effectiveness in
incorporating the management or control of coating degradation and external corrosion into pipeline
integrity management. The objective is to provide a holistic approach to defining the status of the EAM
system that is in current use in energy pipeline organisations and to examine the role of EAM in integrity
management of these pipelines

Keywords
pipeline, maintaining, integrity, management, holistic, asset

Disciplines
Engineering | Science and Technology Studies

Publication Details
El-Akruti, K., Zhang, T. & Dwight, R. (2016). Maintaining pipeline integrity through holistic asset
management. European Journal of Industrial Engineering, 10 (5), 618-638.

This journal article is available at Research Online: https://ro.uow.edu.au/eispapers/6058

European J. Industrial Engineering, Vol. 10, No.5, 2016, pp.618-638.

Maintaining Pipeline Integrity through Holistic Asset Management

Khaled El-Akruti, Tieling Zhang1, Richard Dwight
School of Mechanical, Materials and Mechatronic Engineering,
University of Wollongong, NSW 2522, Australia
Email: Khaled@uow.edu.au, tieling@uow.edu.au, radwight@uow.edu.au

Abstract

A review of the concept of engineering asset management (EAM) and its role in integrity
management within the context of energy pipelines has been conducted. The EAM system is
shown to be concerned with pipeline integrity assurance at any point of the asset life. The
effectiveness of a holistic EAM approach to assuring pipeline integrity is explored through
case studies for pipelines that transport high pressure natural gas or liquid petroleum. The
research examines the EAM system activities, data available and information flow and
decision mechanisms utilised in industry and their effectiveness in incorporating the
management or control of coating degradation and external corrosion into pipeline integrity
management. The objective is to provide a holistic approach to defining the status of the
EAM system that is in current use in energy pipeline organisations and to examine the role of
EAM in integrity management of these pipelines. [Received 30 September 2014; Revised 15
June 2015; Accepted 21 March 2016]

Keywords: integrity management; asset management; coating degradation; pipelines;

external corrosion; asset life cycle; remaining life.

1. Review of Asset Management System

1.1 Engineering Asset Management

Researches on technical asset-related activities have been treated extensively in the literature
such as researches on maintenance and its strategy (Tsang, 1998; 2002; Mather, 2005; Pinjala
et al., 2006); performance measurement and optimization (Dekker and Scarf, 1998; Garg and
Deshmukh, 2006); replacement and remaining asset life determination (Jardine and Tsang,
2013; Zuashkiani and Jardine, 2013; Wijnia et al., 2007; Scarf et al., 2007; Oien, 1998),
maintenance outsourcing (Cruz and Rinco, 2012; Wang, 2010; Martin, 1997; Buczkowski et
al., 2005); maintenance process planning, task and task interval selection (Ghosh and Roy,
2010; Mckone and Weiss, 2002; Khan and Haddara 2003); planning, scheduling and
information management (Satyanarayana and Prasad, 1996; Nagarur and Kaewplang, 1999;
Tsang et al., 2006).
It is argued that broader issues of the EAM system have not attracted the attention as
required. Frolov et al. (2009) suggest that EAM has been viewed as narrowly focused on
reliability and maintainability of assets. Charles and Alan (2005) point out that the
contribution of EAM had not been considered from the view of the whole life cycle. Ouertani
et al. (2008) argue that maintenance is only one of the ‘variables’ in managing assets, others
include design, construction, installation and utilisation.
Life cycle costs are sometimes inadequately considered, as suggested by Charles and
Alan (2005). Blanchard (2010) points out the importance of considering future activities in
the life cycle as part of a system engineering approach to asset provision. Amadi-Echendu
(2004) and Frolov et al. (2009) suggest that overcoming the deficiency in approach in life

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Corresponding author

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European J. Industrial Engineering, Vol. 10, No.5, 2016, pp.618-638.

cycle cost management requires considerations beyond normal cost principles of

maintenance.
Coordination of activities throughout the life of an asset is critical for reducing life cycle
costs. Conversely, the responsibility for life cycle management typically changes hands from
one phase to the next. Coordination between the succession of phases, such as acquisition,
deployment, operation/maintenance or utilisation, and retirement is vital to effective EAM
(Ouertani et al., 2008). These phases will typically be managed by different organisations or
units. This results in structural interfaces in addition to the inherent temporal separation of
activities that must be managed by the EAM system.
The life cycles of assets are typically interrelated with their life cycles impacting on
others. This inter-dependence suggests the need for life cycle management of the total system
of assets associated with a business outcome. For example, measuring and monitoring
performance and condition serves operations, maintenance, and capital replacement decisions
that should inform feasibility studies, design and construction, and deployment of new assets.
The objective is to provide information and a basis for future activities including:
1) improving asset reliability through efficient prediction of asset failures;
2) planning and scheduling of repairs, replacement, development, and redeployment;
3) maximizing asset performance and throughput;
4) improving asset selection, design and construction, and deployment and
5) indicating opportunity for improvement.
However, information must be managed and put into the right form for decision making.

1.2 Holistic Asset Management Approach

The holistic asset management approach is a systematic approach that provides an integrated
view of the EAM system within the whole organisation’s management system. It is an
effective way of managing assets utilised by an organisation, through their life cycle, for the
purpose of value creation and delivery. This is apparent from the EAM system’s definition:
“The system that plans and controls the asset-related activities and their relationships to
ensure the asset performance that meets the intended competitive strategy of the
organisation” (El-Akruti, 2012). As such, EAM includes both technical and business
activities of an organisation. As a control system EAM involves a set of planning and control
activities at different organisational levels. Its span of control extends from identification of
the need to the disposal and liability thereafter. Thus, asset management activities need to be
organised by focusing on life cycle cost and all asset-related organisational activities
interrelated through all life cycle stages. For example, decisions on the disposal of an asset as
well as decisions on the introduction of new assets are interrelated. This requires
contributions from many organisational entities and levels in different life cycle stages.
Pinjala et al. (2006) discuss the relationship between business and some of the asset-related
activities such as maintenance. A strategic approach to maintenance as an asset-related
activity has been recognised especially in capital-intensive industries (Tsang, 2002; Pinjala et
al., 2006; Muchiri et al., 2010).
The concept and possible benefits of a holistic system approach to EAM has been
identified but still not fully developed (Hipkin, 1998; Dornan, 2002; LoPorto and Udo, 2003;
Mohseni, 2003; Amadi-Echendu, 2004; Charles and Alan, 2005; Narman, Gammelgard et al.,
2006; Stapelberg, 2006; CIEAM, 2008; Haffejee and Brent, 2008; Asset Management
Council, 2009). This approach has emerged based on the practice of particular organisations.
Several frameworks and models have been proposed. Geraerds’s model (1992) ‘The EUT
Maintenance Model’ and the Asset Management Council’s Technologies Model (2007) are
particular examples. These are published by individuals or organisations according to their
needs. Available EAM frameworks do not cover all of the relevant aspects in a manner

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European J. Industrial Engineering, Vol. 10, No.5, 2016, pp.618-638.

suitable for application. Some, e.g., UK tero-technology framework cited in Bamber et al.
(2004); and the system engineering or life cycle framework (Blanchard & Fabrycky, 2010),
tend to present EAM relevant activities that follow the sequential life cycle stages of an asset
rather than covering all of the activities required by an organisation managing a portfolio of
assets.
There is an emerging list of standards setting out the requirements for an EAM system
including ISO/DIS 55000; PAS 55-1&2 and more specific systems engineering standards
such as ISO/IEC 15288. Some organisations have utilised such standards or guides to
enhance their EAM system.
The holistic asset management approach involves a set of integrated decisions that may
exist such as:
 Establishing the remaining life costs (given the asset is in the use phase), which raises
the issue about replacement cost as a function of behaviour of the current system.
 Repair/replacement decision logic which may give rise to economic or optimum
repair frequency and replacement period.
 Prediction and estimation decisions may require Condition Based Maintenance
breadth and depth for visibility.
 Projection decisions involve investment, system operation and support costs. These
are based on the projected activities throughout the operational use and support phase
and are usually the most difficult to estimate.
 Trade-off decisions may involve capital vs. running costs, labor and materials versus
reduced services and reduced safety.
Models that organisations can adopt to allow these outcomes to be achieved must include
appropriate use of data. A general decision flow process of EAM system’s activities is shown
in Figure 1. An integrated view of the EAM system decisions with a prediction model for
energy pipelines is set out as shown in Figure 2. In this view the life cycle or supporting
activities such as operation and maintenance are depicted as integrated with EAM activities
such as planning or risk assessment (Dwight et al., 2011). This view focuses on illustrating
the relationship between life prediction and other key activities or decisions associated with
the assurance and management of pipeline integrity.

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European J. Industrial Engineering, Vol. 10, No.5, 2016, pp.618-638.

Start
0

Develop Plans &

Procedures according
to Standards

Implement plans

Measure & Record

Data

Data Storing and

Reporting

Assess & Control f or

Compliance

No Signif icant Change

Needed?
Yes
Analysis & Evaluate

Yes Make
Possible Solution
Obtained? Decision

No
Overall Review

Research and Recommend

Change to Asset
Management System

Figure 1 General decision flow process of EAM system’s activities

Figure 2 An integrated model of computational prediction and asset management decisions (Dwight
et al., 2011)

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European J. Industrial Engineering, Vol. 10, No.5, 2016, pp.618-638.

1.3 Relevant Frameworks and Their Relationship or Applicability to Energy Pipelines

As a basis for understanding the current form of a particular EAM system, it may be useful to
utilise a generic framework that defines expected activities and important interrelationships.
The specific needs of industries such as the pipeline industry can be investigated in this way.
There are many frameworks that have been proposed. Each has a different focus. In
general, the focus is either on the asset related activities: design; maintenance; degradation
modelling, or alternatively on the management or the EAM system that controls those asset-
related activities. El-Akruti (2012) presents a functional system model as shown in Figure 3
that illustrates the basic elements and their interactions within an organisation that may be
directed at asset provision and performance.
Strategic Business Management nt
Systems in the Organisation

AM-Strategic Planning
and Control Activities

External AM-Aggregate Planning

Triggers and Control Activities

AM-Operational Task
Control Activities

Strategy
Event or Business
Change and Performance
Provision of Resulting asset
Business and Value
asset solutions performance
Performance Asset Solutions Contributionn
Requirement to Strategy

Internal
Triggers
Asset Life Cycle Activitiess

Asset Related Supporting Activities in

the Organisation

Figure 3 A view of the integrated asset management system (El-Akruti, 2012)

The asset related activities are set out in a linear process across the centre of the
framework: provision of asset solution, asset solution operation, leading to asset performance.
The EAM system and the connection to other activities in an organisation are also shown.
The basic concept is that a ‘control system’ for the provision of asset solutions and assurance
of the expected performance should be evident. This ‘EAM system’ is depicted as a discrete
part of the framework. By characterising these basic processes for a particular organisation
some view of the nature of the EAM system can be obtained.

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Such a system must account for all of the life cycle activities, supporting activities,
information and reliable tools to allow for life prediction and testing of strategies directed at
required organisational outcomes including the maintenance of the integrity of assets.

1.4 A Framework for Energy Pipelines Asset Management

EAM associated with energy pipelines has distinctive features. Management of such assets is
vitally concerned with the integrity of the pipeline. Its performance in terms of a capability to
transport a flow-rate of gas may be less of a management issue relative to ensuring the
integrity of the pipeline. Business performance is arguably most affected by actions to ensure
this integrity. In this respect the system integrity management is defined by Usman and
Ngene (2012) as:
“... a suite of activities required to properly manage pipeline assets so as to deliver
greater safety by minimizing risk of failures, higher productivity, longer asset life,
increased asset availability from improved reliability, lower integrity related
operating costs, and ensure compliance with the regulations.”
The aggregated and generalised depiction of the EAM System presented within Figure 1 may
be elaborated and also enhanced to highlight the activities for an energy pipeline management
system. These activities are depicted in Figure 4 and particularly highlight the focus on
integrity, risk, safety, environment and change management that has been found to be typical
of such organisations. The assurance of integrity is largely achieved through the management
or control of changes both internal and external to the organisation and to the asset: the
pipeline. Changes to the assets, changes to asset support activities, or changes in the
environment of the pipeline have a relatively major potential to impact integrity.
From an energy-pipeline EAM perspective the cycle depicted in Figure 4 represents the
EAM system, as a control mechanism, imposed on the pipeline life cycle activities. This
cycle involves decision activities at all three management levels: strategic (6, 7 & 8);
aggregated (1 & 5) and operational (2, 3 & 4).
The adequacy of the activities may be determined by whether the objectives are achieved.
However these asset life related objectives require a long time span of life data, around 100
years, to confirm their achievement. Therefore, the alternative approach to checking the
adequacy of activities or actions is required. In addition to identifying gaps in compliance
with standards or plans or milestones, a proxy for performance may be obtained by
considering frameworks such as that set out in Figure 4. It can be used as a reference in
mapping the existence and adequacy of the EAM activities. The mapping process uses the
EAM system proposed by this EAM framework as a requirement in order to adequately
maintain the integrity of the pipeline; manage safety, risk, and change and environment
impact to achieve the required service life of the pipeline. Setting out the existing activities of
an organisation against this EAM system proposed by this framework will assist in finding
gaps or areas where change may facilitate prediction of pipeline conditions and improve
performance in terms of extending or maintaining a reliable pipeline service life.

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Figure 4 Energy pipeline EAM system activities

2. Review of Asset Management System Status in Energy Pipelines

2.1 Review Methodology

The adopted methodology covers case studies conducted by reviewing specific actions
through interviews with the managers involved and analysis of relevant documentations in
addition to a survey questionnaire. In particular, the investigation focuses on the organisation
records related to coating deterioration and external corrosion for maintaining the pipeline
integrity.
The framework in Figure 4 is used to guide the exploration of the EAM systems in place
by verification of the existence of the EAM system activities proposed. This involves
checking the required management activities, relationships, decision mechanisms and
procedures in relation to pipeline lifecycle activities. The objective is to develop an
understanding of the status of the existing EAM system for assuring pipeline integrity in an
organisation.
In order to establish a review process, a list of interview questions based on this
framework has been established to allow deep understanding of the nature and quality of the
coating deterioration and external-corrosion in relation to the role of the EAM system.
Interviews were conducted with representatives from several companies in the pipeline
industry and data obtained from archival records collected from these companies’ websites or
documents that were provided. For confirmation of data, a comprehensive list of questions
submitted to a list of companies in the pipeline industry to allow for a view from a wider
population to be formed.
The information gained is analysed in relation to those elements presented in the
framework and conclusion is drawn based on the findings.

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2.2 Asset Data Management Process

Raw data on pipeline condition can be obtained through many condition measurement
techniques including in-line inspection (ILI): automated inspection systems that travel inside
the pipeline capable of detecting cracks, corrosion pits and other surface irregularities
(Pandey, 1998; Clancy et al., 2012). Other techniques or tools including potential surveys,
DCVG (PML, 2012), Cathodic Protection (CP) surveys and operational checks, ultrasonic
testing, and physical digging ups have their specific uses in an overall integrity management
program.
Decision making is typically dependent on the data generated from condition assessment,
modelling results, preservation and maintenance strategy and the future condition predicted
based on these criteria (Ahammed, 1998; Pandey, 1998; Caleyo J.L. et al., 2002; Clancy et
al., 2012). Accumulated condition data may be fed to prediction models. Maintenance
decisions may be made based on a probability distribution of overall defect population; or
empirically based on the inspection-detected defect population (Ahammed, 1998; Pandey,
1998; Caleyo et al., 2002; Clancy et al., 2012).
The large volumes and disparate sources of relevant data imply an importance to data
management. Several assessment techniques and analysis are used in life prediction such as
failure mode effect analysis (Krauss, 2005; Savino, 2011), reliability assessment method
(Rashid and Ismail, 2008), finite element analysis or probabilistic failure assessment or
simulation and capability modelling and effectiveness analyses (e.g., Ahammed, 1998;
Caleyo et al., 2002; Clancy et al., 2012).

2.3 Mapping Status of Asset Management System Activities

The status of current activities, as evidenced by the investigation has been mapped against the
pipeline EAM framework categories depicted in Figure 4. Here the key EAM activities to
maintain the pipeline integrity and those related deficiencies or non-conformance are set out.
This mapping indicates improvement possibilities in two categories of activities (Category 4
and 6). With respect to Category 4, there is an indication that there is a possibility to better
accumulate and store data so that it can be easily retrieved, organised for utilisation and used
in decision assistance purposes. Second, in relation to Category 6, there is an indication that
the analysis is mainly qualitative and is mostly based on recent data. Quantitative analysis has
typically not been used to the extent possible to assist in decision making because the existing
data format is not compatible with this use and data for some periods of operation are
normally missing.

2.4 Key Asset Management System Activities for Assuring Pipeline Integrity
These activities are essential but they do not stand alone and must be followed by the
required corrosion assessment, cracking assessment, excavations and direct damage
assessments in addition to the required repairs and/or replacements. An overview of the status
of these activities analysed from several companies is given as follows:
a. In-Line Inspection, ILI, is used and its frequency is risk based. Its interval is usually
determined based upon risk assessment, state regulation, industrial practice, criticality
and experience. The cost of ILI is a major component of the total life cycle cost but has
less influence than risk on the frequency determined for its application. Commonly
available pigging technologies are not feasible on all gas transmission pipelines because
some pipelines are telescopic and have acute bends. Sometimes, it is also difficult to
modify pipelines to make it piggable, for example, it is difficult to carry out pipeline
modification to install pig launcher and receivers in suburban areas.

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b. Coating Defects Surveys, such as DCVG, identifies coating faults which are then verified
by excavating the pipe and carrying out direct inspection. Some companies seem to use
DCVG on all pipelines periodically, while others seem to use it only on unpiggable
sections but more frequently. There is a lack of correlation between DCVG indications
and actual corrosion sites. As reported from past experience, coating disbondment which
is ‘shielded’ coating failure cannot be detected by DCVG. The cost of DCVG can be of
major impact on the total life cycle cost if it is done on all pipelines. Some companies try
to cut down this cost by limiting this activity to unpiggable sections and rely on ILI for
failure prevention.
c. Cathodic Protection Unit (CPU) Inspection, is used to ascertain the continual
performance of CP systems. Its frequency is determined based on historical data from
maintenance regime. Many companies are currently working on remote monitoring of
CPU performance but not all pipelines have remote monitoring of CPU.
d. Potential Survey, CP, is a labour based activity and its cost is of major impact. It is
conducted in compliance with the licence code requirements and ensures adequate
cathodic protection levels are being maintained along the length of the pipeline.
The review of practices in those companies shows that all of these activities are used in
combination within the pipeline industry and no one of these activities can stand alone as a
perfect means without using others.
However, emphasis is found to be directed on in-line inspection, ILI, as a final measure
for failure prevention. It provides the only means for detecting corrosion directly and
reportedly improved over the past ten years. It can provide more accurate indications of both
size and location of an anomaly.
Reports show that industry is becoming more dependent on ILI as a direct condition
inspection technique in preference to coating defect survey technology e.g., DCVG. This is
driven by the lack of correlation between DCVG indications and actual extent of coating
damage, particularly if the coating anomaly involves disbonded coating. In particular, coating
disbondment which is ‘shielded’ coating failure reportedly cannot be detected by DCVG. In
addition DCVG is only an indicator of coating “holidays” which may not correlate to
corrosion sites. Additionally, indications identified by DCVG are normally associated with
coating defect sites that can be protected by cathodic protection. The effectiveness of
inspection processes in detecting these situations appears to be problematic. In addition, some
sections of pipelines and/or the whole pipeline may be ‘unpiggable’. For the pipelines
studied, periodic use of ILI is an integral part of the management of the pipelines. However,
in a recent development of technology for energy pipeline, there is an indication that a new
technology has been developed to detect coating disbondment (Krieg et al., 2007; RoDD
EMAT Service, 2014) but it may still take some time to verify its effectiveness in detection
of the coating disbondment and it may be costly.

2.5 Activities Related to Technical and Risk Assessment Criteria for Decision Making
Condition assessment activities are found to be one of the technical and essential parts of the
pipeline EAM system. Condition assessment is associated with location and has an important
role for specific condition prediction as a function of time. Condition assessment data informs
decisions including asset provision and modification and maintenance requirements analysis.
The condition or assessment data to be taken into account includes the pipeline’s age,
condition, coating type, climate, location, soil type, operating parameters: particularly
operating pressure and transported fluid properties, presence of stray currents, pipe material

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European J. Industrial Engineering, Vol. 10, No.5, 2016, pp.618-638.

protection methods, maintenance strategy and replacement strategy used, past events that
have occurred (e.g., coating or pipeline failure, repairs and changes to the protection
measures), protective, preventive and corrective maintenance activities in place or proposed
type of monitoring and reinspection intervals; and, history of known defects: depth, length of
corrosion and historical and resulting projected rate of corrosion, defect area per length of
pipeline.
It is evident that all activities and mechanisms for data recording, accumulation and
storing exist. SCADA systems are in common use however they are not normally available
for entire pipeline lengths.
Condition parameters such as critical pressure, depth, width and length of corrosion are
used for decision making. These parameters are measured and used to calculate the corrosion
rate based on the critical values of these parameters. Decisions on reinspection, repair and
recoating are then determined.
The decision criteria based on these corrosion parameters are presented in several steps in
standards. Data viewed are from ILI, coating surveys (DCVG) and excavation inspections.
Such data are used in technical risk assessments in accordance with standards.
The main decision parameter for decision making on ILI is the inspection interval. This is
determined based on conservative corrosion rates with the objective of detecting corrosion
sites before they reach a critical size. The decision process regarding ILI inspection interval
depends on many factors such as risk assessment, corrosion rate estimation, and pipeline
pressure. The significant changes or threats are identified through detailed consideration of
both likelihood of rupture or leakage and consequence associated with the particular case.
This is driven by location and surrounding vulnerabilities, as well as the likely or
maximum expected rate of deterioration.
This is taken as evidence that risk assessment is done in an integrated manner with other
assessments or as part of a total EAM review. Risk assessment is not considered as being able
to be treated separately and it is mostly done qualitatively.
Decision on determining ILI frequency is based on rate of defect progress, and mode of
failure either rupture or leakage. ILI inspection is done by outsourced dedicated service
providers and ILI data is managed and pre-analysed by these service providers who provide
recommendations and statistical data summary. ILI data is kept by pipeline operators but not
evidently used in a comprehensive way to explore the progress of corrosion. This is in part
due to the difficulty of matching defect records between ILI runs.
It appears that the current processes used will benefit from enhanced decision support
tools being able to integrate a range of considerations to provide some more accurate
information. Quantitative tools are sought to assist in this decision making: ILI frequency;
capital investment justification to improve inspection capability; trade-offs between repair
costs and inspection costs; protective systems investment and refurbishment or replacement.

3. Key Findings of Asset Management System Review in Relation to Pipeline Integrity

Reviewing the status of the EAM system in the current practice within the energy pipeline
operating companies has accumulated many findings that are related to maintaining the
pipeline integrity.

3.1 Findings Relevant to Energy Pipeline Failure Types

There are a number of corrosion-induced functional failures that have different relevance to
energy pipeline EAM: leakage and rupture. Their relative importance may depend on
location. Both may lead to disaster including significant loss of life if they occur in populated
areas. Rupture as a direct failure event may result in severe damage and significant financial

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loss regardless of location of occurrence. The consequence of leakage failure is more location
dependent and holds the possibility of being more tolerable than a rupture when the leak
occurs in a remote location.
These failure modes can be triggered by corrosion mechanisms including pitting,
cracking, fatigue or crevice corrosion that can take place over time and with undetected
defects. These mechanisms may be initiated by many causes such as soil contraction and
expansion on the surface of the pipe resulting in coating defects that may lead to corrosion
modes by shielding or disbondment (isolation from cathodic protection) or by unreliable
cathodic protection or both.
Disbondment and unreliable cathodic protection lead to a corrosion mechanism which
results in one of the corrosion modes. The process leading to either a leak or a rupture may be
managed through interventions at a number of stages, see below:
Stage-1: protective systems provision and maintenance: the EAM’s focus is on
maintaining reliable cathodic protection and a quality coating.
Stage-2: protective systems failure detection: the emphasis is turned to detecting coating
defects before they result in corrosion.
Stage-3: prevention of pipeline failure through detecting the corrosion damage before it
progresses to a critical condition that leads to a failure.
At Stage-1, unreliable cathodic protection may be initiated due to inadequate or over
protection that can be avoided or eliminated by close observation of the cathodic protection
system or potential surveys. For example, unreliable cathodic protection may result from
failure in CP units or/and effects of interference such as stray current. The resulting corrosion
rate from inadequate practice may be very high and can result in leakage or rupture in a
period that may be less than 6 months. The general approach taken to prevent unreliable
cathodic protection is maintained by regular observation of the CP units combined with less
frequent potential surveys.
At Stage-2, coating defects may lead to corrosion modes that may be initiated as a result
of low coating quality, incorrect shrink sleeve application, slits in coating from construction
damage such as backfill. These coating defects cause disbondment in a way that may shield
the pipe from both cathodic protection and discovery via DCVG. For detective coating
defects, the approach taken is to use DCVG surveys in some circumstances. Often DCVG
based inspection provides little useful additional information. This results from an
incapability to detect the disbonded coating which is shielding from detection of the situation
by DCVG and concurrently preventing from CP protection. Conversely coating failures
detected by DCVG are, by their nature, open to CP currents and so will only create a
corrosion situation in the absence of effective CP. The lack of additional information
provided by DCVG tends to resulting in uneconomical excavation.
At Stage-3, undiscovered corrosion damage remains overlooked by the cathodic
protection system and hidden in potential surveys and external coating surveys. This damage
may be a result of any of the corrosion modes such as pitting in the thickness of the pipeline
wall. This can only be observed as a corrosion damage of the pipe wall and can be detected
by the ILI process. Shielding or disbondment is the main cause that leads to isolating the
surface of the pipe and it becomes unprotected by the CP unit. These are special kinds of
disbondment defects that are possibly more prevalent for some types of coating and/or at
some coating age. For this type of failure mode resulting from the undetected coating defects,
ILI frequency is determined by considering both the uncertainty in the growth rate of
corrosion of the current population of corrosion sites and the likelihood of new sites arising.
The critical pit size and the acceptable level of risk also affect the ILI frequency.

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3.2 Finding Relevant to Data Management in Pipeline Asset Management Decision

The use of data in technical assessment and risk assessment for decision making is found
evident as reflected by use of ILI data for decision making on the immediate maintenance
action. In this sense companies use service providers’ data and recommendations based on
these data to make decision on the required action to avoid corrosion failure but do not
predict the future condition. This ILI data is prepared and managed by the service providers
and has not been utilized by pipeline companies for prediction purposes. Its current status is
not in the form that can be easily used for predicting the corrosion rate and modelling
pipeline life and therefore further arrangement of the data is required and the data processing
techniques have to be developed.
With respect to the availability and adequacy of data for integrating life prediction
modelling and EAM decision making based on possible failure modes or risk scenarios it is
evident that:
1) The pipeline industry utilises available appropriate inspection methods, resulting in
useful data but further investigation is required to sort the available data for use in
more sophisticated life modelling and decision making.
2) If the available data is managed through databases, it could allow it to be processed
to model risk scenarios and be integrated into decision models for more accurate
decision information.
3) Corrosion data for all pipeline life cycle stages and for all transmission pipelines
need to be extracted and processed for the purpose of pipeline condition prediction.
4) For better use of the data for both industry and research purposes, it is required to
format the data via automated means to suit the prediction modelling purpose.
It is found that it is essential to conduct database management work to convert the useful
data into a useable format so that the data can be automatically linked to other tools for life
prediction and decision making purpose. As one reply puts it: “Setup of database is a high
priority – we see information management as a key issue to address now”. In addition, the
replies to the survey question “What improvements do you seek in the current EAM system?”
have indicated this priority, importance and future relevance of establishing the means for
asset data management system urgently. Evidence for this can be seen from this reply:
“Looking to improve data management to allow comparison of data from different sources,
e.g., direct inspections including ILI, CP, DCVG, etc.”. Another reply shows the need for a
fully integrated EAM information system “We like to integrate pipeline integrity
management system (PIMS) asset databases (corrosion database, asset inventory,
maintenance database) with GIS mapping system”.

3.3 Finding Relevant to Asset Management Decision Process and Criteria

The existing decision processes set out through the life of an energy pipeline may be set out
into a flowchart as shown in Figure 5. The flowchart was constructed based on the revealed
aspects of the EAM decision process focused on external corrosion.
Further investigation is required to balance these decisions against cost and business
value data. The value contribution to the business and the dependability of these EAM
activities needs to be validated. Cost data was not easily obtained and those given were
estimated by personal experience but are somewhat vague and lack of accuracy. It is evident
that there is a need to develop a systematic cost estimation system for a set of activities cost
parameters that can be used as input to a life cycle cost model. For example, one reply to the
relevant survey question has indicated that “a prediction model can help in allocating the
budget for unplanned activities more efficiently”. Such model can be used to estimate or
predict pipelines life cycle cost and facilitate bases for defining the economical and

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remaining life of pipelines. Replies to the survey have provided information on cost elements
but indicated that further discussions are required to provide some cost estimation data. In
summary, a dedicated study on cost modelling by considering all activities in asset life cycle
is required.

Figure 5 (a) Asset management activities flow diagram

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European J. Industrial Engineering, Vol. 10, No.5, 2016, pp.618-638.

1 2

No Coating survey
Go to required?

Yes

Conduct Coating
Survey, DCVG

No
Repair Required?
Go to

Yes
Conduct Sampling for
excavation & Repair

No
5 years reached?
Go to
Yes
Integrity Review
Report

Any significant
No change in condition or
1
Go to expected threats?

Yes

Figure 5 (b) Asset management activities flow diagram

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European J. Industrial Engineering, Vol. 10, No.5, 2016, pp.618-638.

Figure 5 (c) Asset management activities flow diagram

4. Conclusion and Challenges

The review determined that, as would be expected, EAM is in place in energy pipeline
industry and plays an essential role to assure the integrity of pipelines. There is evidence that
technical evaluation, and safety and risk assessment with their results are used as a feed-
forward input to the EAM system to enhance the management of pipeline integrity.
The effort made in maintaining the pipeline integrity is focused on preventing rupture
and particularly in populated areas, leakage. Major improvements in inspection technology,

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European J. Industrial Engineering, Vol. 10, No.5, 2016, pp.618-638.

primarily through ILI, have reduced the management problem for a majority of the pipeline
companies but leaves sections of pipelines that are inaccessible by ILI tools still difficult to
manage. In essence ILI identifies damage to the pipeline once it has occurred rather than
predicting or preempting that damage. Therefore, there is a need to predict the initiation and
rate of progress of corrosion modes and the risk of failure associated with each of them to
enhance the EAM decisions and help predict the life of pipelines.
Areas where the response of pipeline organisations to the need to manage pipeline
integrity include:
1) Extracting, sorting and formatting the available data into a database for enhancing the
EAM decision making process.
2) Incorporating the existing data available to pipeline operator into an integrated
decision support system.
3) Developing the EAM support decision models to enhance trade-offs or alternatives
comparison decisions.
4) Incorporating life-cycle cost and risk assessment techniques informed by predicted
performance for asset decision making.
While some readily available tools may be employed, it will be necessary to develop and
adapt available tools through research in order to fully realise the benefits that may be
obtained. In this respect, the future challenges that are highlighted by this research include:
 The need to develop a commonly accepted data management system to facilitate
optimised business performance with safe operation of the pipelines. Decision making
data including trade-off analysis results among different activity plans should also be
included in the data management system.
 The need to develop a decision support system (DSS) that sets the proper response to
questions in relation to priority in maintenance or replacement. It extracts and
presents the information about the status of an asset which a manager needs to be
empowered with to take those decisions. The data store holds knowledge of the
conditions that lead to an asset failure, how these conditions evolve and interact, and
how best to solve problems. Rather than simply offering the ‘best’ decision as the one
to be taken, a DSS can offer a range of options together with estimates of their costs,
risks and benefits.
 The need to develop an innovative approach and associated algorithms to
estimate/predict the pipeline conditions with the limited inspection data available.
Pipeline deterioration conditions due to external corrosion, makes it essential to
estimate/predict the corrosion growth rate for each pipeline in order to estimate the
remaining life of the pipeline.
 The need to develop lifecycle cost and risk models for decision making in order to
achieve a reliable and safe pipeline service life, optimised pipeline lifecycle cost and a
satisfied business performance. Such models can help address decision makings on
investment, design and construction; inspection, servicing and repair; pipeline
refurbishment and replacement; plans and schedules for maintenance; maximising
pipeline service life and business performance; estimating acceptable risk levels and
optimal cost limits; budgeting and investment decisions.

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Authors’ biography notes

Biography of Khaled El-Akruti

Khaled El-Akruti obtained his PhD in engineering asset management from University of
Wollongong. Currently, he has completed working on two EPCRC projects and involved in
supervision of PhD and postgraduate students. He is teaching undergraduate and postgraduate
subjects covered under the program of engineering asset management. He has published over
20 articles, numerous research reports for production industry and he has over 12 years’
experience in teaching in universities. He has over 13 years of experience in steel industry
and has worked on a number of projects in relation to asset replacement and operation
optimisation.

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European J. Industrial Engineering, Vol. 10, No.5, 2016, pp.618-638.

Biography of Tieling Zhang

Tieling Zhang received a PhD degree in engineering. He has very strong expertise in data
processing and modelling, system reliability engineering, condition based prediction, process
simulation and optimisation. He published about 80 research articles in the related fields and
completed more than 15 major research projects. He is an invited referee serving for over 20
international journals and, reviewer/technical team member for many international
conferences. He holds 5 patents with 7 others published and pending for grant. He is working
on EPCRC projects by taking the leadership and supervising PhD students who are doing
projects in the fields of systems engineering and engineering asset management.

Biography of Richard Dwight

A/Professor Richard Dwight directs the engineering asset management and rolling stock
engineering programs at the University of Wollongong, Australia. He is director of the
Engineering Asset Management Group at the university and leads major research programs
on asset management on behalf of the Energy Pipelines Cooperative Research Centre,
EPCRC, and similar projects for the CRC for Rail Innovation focused on railway structures.
These are funded by the federal government of Australia. He has published over 50 papers
related to asset management and produced numerous reports for industry. His research
interests include reliability and maintenance engineering, engineering asset management, and
noise and vibration control for railways.

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